Lumen Awarded $2.6M Contract for IP, Voice, and Bandwidth Services

Contract Overview

Contract Amount: $2,629,233 ($2.6M)

Contractor: Lumen Technologies Government Solutions, Inc

Awarding Agency: Government Accountability Office

Start Date: 2023-04-01

End Date: 2024-05-31

Contract Duration: 426 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUEST IS TO ESTABLISH A COMBINED CONTRACT FOR ONGOING IP (05GA0A21F0043), VOICE (05GA0A21F0040) ADD BANDWIDTH SERVICE FOR 1 YEAR WITH LUMEN BRIDGE CONTRACT AGREEMENT.

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80202

State: Colorado Government Spending

Plain-Language Summary

Government Accountability Office obligated $2.6 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC for work described as: THE PURPOSE OF THIS REQUEST IS TO ESTABLISH A COMBINED CONTRACT FOR ONGOING IP (05GA0A21F0043), VOICE (05GA0A21F0040) ADD BANDWIDTH SERVICE FOR 1 YEAR WITH LUMEN BRIDGE CONTRACT AGREEMENT. Key points: 1. Contract awarded to Lumen Technologies Government Solutions, Inc. for essential telecommunications services. 2. The contract covers a 1-year period for ongoing IP, voice, and bandwidth services. 3. This award was made under full and open competition, suggesting a competitive bidding process. 4. The service category is Wired Telecommunications Carriers, a critical infrastructure component.

Value Assessment

Rating: good

The contract value of $2.63 million for a 1-year term appears reasonable for comprehensive telecommunications services. Benchmarking against similar government contracts for IP, voice, and bandwidth would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with pricing driven by market forces rather than sole-source limitations.

Public Impact

Ensures continuity of critical communication services for government operations. Supports essential functions reliant on IP, voice, and bandwidth connectivity. Potential for improved network performance and reliability through updated services.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Positive Signals

Full and open competition
Clear service requirements
Fixed price contract

Sector Analysis

The Wired Telecommunications Carriers sector is vital for government operations, providing the backbone for communication and data transfer. Spending in this sector is consistent with the need for reliable and secure network infrastructure.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract was awarded by the Government Accountability Office (GAO), suggesting a level of oversight. However, the specific oversight mechanisms for this delivery order would need further investigation.

Related Government Programs

Wired Telecommunications Carriers
Government Accountability Office Contracting
GAO, Except Comptroller General Programs

Risk Flags

Potential for vendor lock-in in future contract periods.
Reliance on a single provider for critical communication infrastructure.
Need for detailed Service Level Agreements (SLAs) to ensure performance.

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $2.6 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. THE PURPOSE OF THIS REQUEST IS TO ESTABLISH A COMBINED CONTRACT FOR ONGOING IP (05GA0A21F0043), VOICE (05GA0A21F0040) ADD BANDWIDTH SERVICE FOR 1 YEAR WITH LUMEN BRIDGE CONTRACT AGREEMENT.

Who is the contractor on this award?

The obligated recipient is LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-05-31.

What is the specific performance standard for the bandwidth and voice services to ensure optimal value?

The contract details should specify Service Level Agreements (SLAs) for bandwidth throughput, latency, jitter, and voice call quality. These metrics are crucial for ensuring the services meet operational needs and justify the $2.63 million expenditure. Without defined SLAs, assessing the true value and effectiveness of the contract becomes challenging.

Are there any potential risks associated with relying on a single vendor, Lumen, for these critical services over the contract term?

While awarded under full and open competition, the 1-year term with Lumen presents a risk of vendor lock-in for future renewals. Dependence on a single provider for IP, voice, and bandwidth could lead to reduced negotiating power in subsequent contract periods. Contingency plans for service disruptions or vendor performance issues should be in place.

How does the pricing of this contract compare to industry benchmarks for similar telecommunications services?

A comprehensive comparison against industry benchmarks for IP, voice, and bandwidth services is necessary to fully assess pricing effectiveness. Factors like data volume, speed tiers, and geographic coverage influence costs. The $2.63 million figure should be evaluated against market rates to confirm it represents a competitive and fair price for the services rendered.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4250 N FAIRFAX DRIVE, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $3,057,146

Exercised Options: $2,629,233

Current Obligation: $2,629,233

Actual Outlays: $554,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T07NSD0002

IDV Type: IDC

Timeline